How to Defend a Cheque Bounce Case in Delhi: 8 Defences

By Advocate Shubham Mehta · Updated 5 October 2026 · 8 min read

If you have received summons in a Section 138 complaint, knowing how to defend a cheque bounce case starts with one rule: the law presumes the cheque was given for a legally enforceable debt, and you must rebut that presumption with evidence or by exposing gaps in the complainant’s case. You do not need to prove your defence beyond doubt; a probable defence is enough.

This guide explains the presumption, the main defences, the trial procedure in Delhi, interim compensation and settlement.

Key takeaways

Cheque bounce under Section 138 NI Act is a bailable offence; punishment is up to 2 years, fine up to twice the cheque amount, or both.
Sections 118 and 139 create a presumption in favour of the complainant, but the accused can rebut it on a preponderance of probabilities.
Strong defences include no legally enforceable debt, defective or unserved notice, limitation, and the complainant’s lack of capacity to lend.
Courts may order interim compensation of up to 20% under Section 143A, but it is discretionary.
The offence is compoundable at any stage under Section 147; early settlement costs less.

In this guide

The presumption you must rebut
How to defend a cheque bounce case: 8 common defences
The procedure after you receive summons
Interim compensation under Section 143A
Settlement and compounding
Defence strategy by stage
Practical tips from Delhi courts
Common mistakes to avoid
How a cheque bounce lawyer helps
FAQs

The presumption you must rebut

Under Section 139 of the Negotiable Instruments Act, 1881, the court presumes the holder received the cheque for discharge of a debt. In Rangappa v. Sri Mohan (2010) 11 SCC 441, the Supreme Court held this presumption includes the existence of a legally enforceable debt. In Basalingappa v. Mudibasappa (2019) 5 SCC 418, it held the accused can rebut it on a preponderance of probabilities, including through the complainant’s own evidence.

How to defend a cheque bounce case: 8 common defences

Defence	When it works	Evidence needed
No legally enforceable debt	The cheque was a gift, for a time-barred debt, or for an illegal purpose	Agreements, chats, accounts
Debt already paid / lower amount due	Part-payments were made, but the full cheque was presented	Bank statements, receipts
Security cheque misused	No debt had crystallised on the date of presentation	Loan or supply terms, correspondence
Complainant lacked capacity to lend	Large cash loan with no source shown	Cross-examination, ITRs of complainant
Notice defects	Notice sent after 30 days of the bank memo, or wrong demand amount	Bank memo date, notice copy
Notice not served	Notice sent to the wrong address and not deemed served	Postal records, address proof
Complaint out of time	Filed after one month from the expiry of the 15-day payment period, without condonation	Dates of notice, service and filing
Company not made accused	Director prosecuted for a company cheque without the company as accused	Cheque, complaint memo of parties

Note the limits: in Bir Singh v. Mukesh Kumar (2019) 4 SCC 197, the Supreme Court held that a signed blank cheque voluntarily handed over still attracts the presumption, even if someone else filled in the details. And in Sripati Singh v. State of Jharkhand (2021), it held that a security cheque can lead to a Section 138 case if the debt had become due on the date of presentation.

The procedure after you receive summons

Appear on the summons date with an advocate and furnish bail bonds. Since the offence is bailable, bail is a matter of right.
Notice of accusation is framed (Section 274 BNSS, earlier Section 251 CrPC). You plead not guilty and state your defence briefly.
Application under Section 145(2) NI Act to recall and cross-examine the complainant, who usually gives evidence by affidavit.
Cross-examination of the complainant: source of funds, date and mode of the loan, ITR disclosure, how the cheque was obtained.
Statement of accused under Section 351 BNSS (earlier Section 313 CrPC), where you explain the circumstances.
Defence evidence: your own testimony, bank officials, documents.
Final arguments and judgment. If convicted, you may appeal to the Sessions Court within 30 days; the appellate court may direct a deposit of at least 20% under Section 148.

Interim compensation under Section 143A

The trial court may order the accused to pay up to 20% of the cheque amount as interim compensation. In Rakesh Ranjan Shrivastava v. State of Jharkhand (2024), the Supreme Court held this power is discretionary, not automatic: the court must look at the prima facie strength of the complaint and the defence. A well-reasoned reply can avoid or reduce this order.

Settlement and compounding

Section 147 makes the offence compoundable at any stage. Under the guidelines in Damodar S. Prabhu v. Sayed Babalal H. (2010) 5 SCC 663, costs increase the later you settle. In Delhi, many cheque bounce cases are referred to the Delhi Mediation Centre or Lok Adalat, where settlements are recorded quickly.

Stage of settlement	Effect
Before summons / first date	Lowest cost; complaint withdrawn or compounded
During trial	Compounding with costs as per guidelines
After conviction, in appeal or revision	Still possible, with higher costs

Defence strategy at each stage

Stage	What to do
Legal notice received	Reply in writing within the 15-day period, disputing the debt with reasons. A silent accused finds it harder to explain the defence later.
Summons received	Check dates of dishonour, notice, service and filing for limitation defects; collect bank statements.
Notice of accusation	State the defence clearly and consistently; it should match your reply to the legal notice.
Complainant’s evidence	Cross-examine on source of funds, ITR disclosure, loan documents and how the cheque was obtained.
Defence evidence	Lead documents and, where useful, bank officials or witnesses to the transaction.
Settlement talks	Negotiate through counsel; record terms only in a signed settlement or before the court.

Cheque bounce cases are criminal proceedings, so the same discipline as any trial applies. If there are connected disputes — a civil recovery suit, an FIR for cheating, or a commercial claim — it is worth coordinating them with a criminal lawyer in Delhi and, for the civil side, a money recovery lawyer in Delhi, so that statements in one case do not damage the other.

Practical tips from Delhi courts

From practice in Delhi NI Act courts: the most effective cross-examination usually targets the complainant’s source of funds and whether the loan appears in their income tax returns. Many complaints based on large cash loans fail at this point. Keep your own bank statements ready from the start; trial courts often decide Section 143A applications early.

Common mistakes to avoid

Missing the summons date, which leads to bailable and then non-bailable warrants.
Not filing the Section 145(2) application, losing the right to cross-examine.
Giving a written admission of the debt during settlement talks without a signed settlement.
Ignoring the 30-day appeal limit after conviction.
Assuming a “security cheque” label alone is a defence.

How a cheque bounce lawyer helps

A lawyer can identify technical defects in the notice and complaint, plan cross-examination, oppose interim compensation and negotiate a structured settlement. See our cheque bounce lawyer in Delhi page. If you are the payee instead, read our cheque bounce case procedure guide.

For advice specific to your situation, you may consult a qualified advocate.

Frequently asked questions

Is a cheque bounce case bailable?

Yes. An offence under Section 138 of the Negotiable Instruments Act is bailable. When you appear on summons, the court grants bail on furnishing bail bonds. If you do not appear, the court may issue bailable and later non-bailable warrants, so attending the first date matters.

Can I go to jail for a cheque bounce case?

Conviction can lead to imprisonment of up to two years, a fine up to twice the cheque amount, or both. In practice, courts often impose a fine or compensation, and many cases end in settlement. Sentences are usually suspended during appeal if the required deposit is made.

Is a security cheque a valid defence?

Not by itself. The Supreme Court has held that if the debt had become legally due on the date the cheque was presented, a security cheque can still lead to liability. The defence works when no debt had crystallised, or the cheque was misused contrary to the agreed terms.

What if I never received the legal notice?

Non-service of notice can be a defence, but notice sent to your correct address by registered post is generally deemed served. If the address was wrong, keep proof of your actual address. You may also pay within 15 days of receiving the court summons, which courts have treated as a ground to close the case.

Do I have to pay 20% interim compensation?

Not automatically. Section 143A allows the trial court to order up to 20%, but the Supreme Court has held this is discretionary. The court must consider whether the complaint and defence each have prima facie merit before ordering it. A clear written defence helps.

Can a cheque bounce case be settled in Delhi?

Yes. The offence is compoundable at any stage under Section 147. Delhi courts often refer matters to mediation or Lok Adalat. Settling early is cheaper because compounding costs rise at later stages, and a signed settlement should clearly record the amount and payment schedule.

Conclusion

Knowing how to defend a cheque bounce case means attacking the presumption with documents, cross-examination and technical defects in notice and limitation. An early, evidence-based defence also strengthens your position in any settlement.

Advocate Shubham Mehta, SRLM Law Associates, Delhi

Written and reviewed by Advocate Shubham Mehta
Advocate, Bar Council of Delhi (Enrl. No. D/6398/2021), and head of SRLM Law Associates. He practises before Rohini Courts, other Delhi District Courts, Family Courts, consumer commissions and the Delhi High Court. More about the firm

Speak to SRLM Law Associates

For advice specific to your situation, you may consult a qualified advocate. Advocate Shubham Mehta and the SRLM Law Associates team can be reached at +91 92052 74745 or [email protected]. Chamber: 1310, Lawyer’s Chamber Block, Rohini Courts, Delhi – 110085. Office: 250, Kayan Vihar, Delhi – 110033. Open daily, 9 am – 9 pm. See our Google reviews and directions.

Call +91 92052 74745

Request Free Consultation

This article is for general information only and is not legal advice.